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{
    "id": 19495,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/19495/?format=api",
    "text_counter": 191,
    "type": "speech",
    "speaker_name": "Maj. Sugow",
    "speaker_title": "The Assistant Minister, Ministry of State for Public Service",
    "speaker": {
        "id": 142,
        "legal_name": "Aden Ahmed Sugow",
        "slug": "aden-sugow"
    },
    "content": "These changes were expected to reduce the pension burden on the Exchequer and also halt further escalation of the Pension Bill in the short-term. The retirement age was raised to 60 years from April, 2009. Mr. Temporary Deputy Speaker, Sir, the Public Service Superannuation Scheme has been designed in line with the requirements of the Retirement Benefits Authority (RBA). These include fund administration, fund audit, investment of funds and payment of benefits to members. Of particular interest is the fact that in order to ensure that employees and Government interests in the fund are taken care of, membership to the Board of Trustees includes key offices of Government and workers’ representatives from various sectors of the Public Service. As I have indicated in the opening section of this Statement, one of the major concerns that this Bill intends to address is affordability and sustainability of the Public Service pensions. Therefore, in the spirit of cost-sharing, employees must make a contribution to their own social welfare to ensure their livelihood when they leave the Public Service. In this regard, Government employees will be required to contribute only 7.5 per cent of their basic salaries. On the other hand, the Government will contribute 15 per cent of employees’ basic salary. This is a fairly generous rate of contribution, which is double that of employees. Further, provision has been made for any employee who wishes to make a bigger contribution to their own pension accounts to do so. Mr. Temporary Deputy Speaker, Sir, the Bill makes provision for the right to retirement benefits to any member who is already covered by the current pension scheme under Chapter 189. This right will be in the form of a recognition bond redeemable by the employee on exiting the Public Service under circumstances such as attainment of the age of 60 years or 50 years, or other circumstances allowing retirement as provided for in Clause 27 of the Bill. The bond further provides for 5 per cent national interest on the bond value. The process of introducing this scheme to the Public Service has been long. It has involved consultations at various levels of Government, involvement of pension experts, bench-marking on other public services within this continent and outside, extensive engagement with public servants and the respective workers’ unions, including the Kenya National Union of Teachers (KNUT), the Kenya Union of Post Primary Education Teachers (KUPPET) and the Kenya Union of Civil Servants (KUCS). This was to ensure that there is sufficient information, support and acceptance of the scheme. Mr. Temporary Deputy Speaker, Sir, establishment of the Fund will provide a significant resource pool for investment in income generating ventures for the benefit of members and also contribute to stimulating the economy. The purpose of this Bill is to establish the Public Service Superannuation Scheme, a contributory pension scheme for teachers under the Teachers Service Commission (TSC), civil servants, including the National Youth Service (NYS) and disciplined services – the National Police Service and the Prisons Service. It also establishes the Public Service Superannuation Fund, through which Government and members’ contributions to the scheme and members’ benefits out of the scheme will be managed. With those few remarks, I beg to move and request that the Deputy Leader of Government Business to second the Motion."
}